Compare and Buy Product Liability Insurance

Product Liability Insurance indemnifies the manufacturer, distributor, wholesaler, and retailer against third party liability arising out of the sale of products by the manufacturer.


This policy covers all sums (inclusive of defense costs) which the insured becomes legally liable to pay as damages as a consequence of:

1. Accidental death/ bodily injury or disease to any third party

2. Accidental damage to property belonging to a third party

arising out of any defect in the product manufactured by the insured and specifically mentioned in the policy after such product has left the insured's premises.

The defect in the product may be a manufacturing defect or may even be due to faulty packaging, delivery specifications or instructions as to use of the product.

The policy covers the sales turnover of the company- both domestic and/or exports.

The policy is on claims made basis i.e. the claims must arise and be made in writing on the insurance company during the policy period.

Who can take the policy?

The policy can be taken by the manufacturer of any product whether it be the final product or part of the final product.

How to select the sum insured?

In Product Liability Policy, the sum insured is referred to as Limit of Indemnity. This limit is fixed per accident and per policy period which is called Any One Accident (AOA) limit and Any One Year (AOY) limit respectively. The ratio of AOA limit to AOY limit can be chosen from the following:

  • 1:1
  • 1:2
  • 1:3
  • 1:4

The AOA limit which is the maximum amount payable for each accident should be fixed taking into account the nature of product covered and the maximum number of people who could be affected and maximum property damage that could occur, in the worst possible accident after sale of the product.

Add On Covers

Liability Policy can be extended to cover legal expenses arising out of

  • Duty to Defend and Reimbursement Coverage
  • Worldwide territory and jurisdiction
  • Defense Costs in addition and Defense Costs Inclusive covers
  • Flexibility to add your buyer / reseller as Additional Insured / Named Vendor under scope of the policy
  • Claims made and Occurrence based wordings


  • Costs arising out of recall of any product
  • Deliberate, willful or intentional non-compliance of any statutory provision.
  • Arising out of pure financial loss
  • Arising out of fines, penalties, punitive and/or exemplary damages

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